Tag: Economics

What would represent a monetarist anti-inflationary policy?

Select ONE answer:

1. an increase in indirect taxation
2. direct foreign exchange rate intervention
3. the introduction of maximum prices
4. the sale of securities on the open market

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

What is most likely to be increased by a policy of increased direct taxes and lower government spending?

Select ONE answer:

1. the balance of payments deficit
2. the budget deficit
3. the rate of inflation
4. the level of unemployment

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

The monetary authorities increase interest rates in order to control inflation.

What is likely to increase as a result of this?

Select ONE answer:

1. firms’ sales revenue
2. investment expenditure
3. net capital outflows
4. the exchange rate

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

Which policy is most likely to result in a decrease in the natural rate of unemployment?

Select ONE answer:

1. a reduction in interest rates
2. an increase in government expenditure on goods and services
3. an increase in trade union membership
4. a decrease in the level of government payments to the unemployed

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

The natural rate of unemployment in an economy is 5%.

What will happen if a government persists in trying to achieve a target rate of unemployment of 3% by expansionary monetary policy?

Select ONE answer:

1. an accelerating rate of inflation
2. a diminishing rate of inflation
3. a high but constant rate of inflation
4. a negative rate of inflation

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 1

1. Correct
2. Not correct
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.